FSBO commercial real estate is commercial real estate being sold by the owner. It’s not that uncommon in the commercial real estate business.
That’s because – unlike residential real estate – most FSBO commercial real estate is owned by professional business people. As a result, the investment group holding the real estate includes an attorney, high-net worth individual, or even real estate professionals.
Here are a few tips for buyers thinking about investing in for sale by owner commercial real estate.
Buyer Representation For FSBO Commercial Real Estate
More often that not, with FSBO commercial real estate, or any commercial real estate for that matter, a buyer is buying problems that the seller can’t handle.
That’s not necessarily a bad thing. Sometimes commercial real estate owners don’t have enough capital to make repairs or upgrades. Other times they lack the property management resources to find and keep great tenants.
Situations like these can be a good deal for the buyer, if the buyer has what the seller lacks.
But whatever the reason, buying FSBO commercial real estate means that you’re buying someone else’s problems.
That’s why it’s important to hire a buyer broker to represent you in a for sale by owner commercial real estate transaction.
Commercial Real Estate Due Diligence
Commercial real estate investors should always be sure to do their due diligence. It doesn’t matter if the property is a FSBO or listed on the open market.
There’s a lot more due diligence when buying commercial real estate than when buying a residential property. Some of the things commercial real estate buyers should always verify include:
- Tenant leases, tenant quality, and historical rent payments
- Current zoning and potential business restrictions
- New competition coming to the market
- Discover why the owner is really selling